Ceylon Petroleum has announced that petrol prices in Sri Lanka will increase by Rs. 77 per liter and diesel by Rs. 55 per liter. As a result, petrol prices in Sri Lanka are at an all-time high of 254 rupees a liter. Diesel prices have risen 45 percent to 176 rupees.
Earlier, Indian Oil, which has been operating in Sri Lanka since 2002, recently increased petrol prices by Rs 50 per liter and diesel by Rs 75 per liter. While Ceylon Petroleum receives a subsidy from the Sri Lankan government, Indian Oil does not receive any subsidy. Therefore, it fixes the price of petrol and diesel in Sri Lanka according to its import and production costs.
Sri Lanka’s currency has depreciated by 30 percent against the Indian rupee, and foreign exchange reserves have plummeted. Therefore, the Sri Lankan government has drastically increased petrol and diesel prices to offset the loss of revenue.